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Amazon, Microsoft, Google and Oracle share Pentagon ‘cloud deal of the century’

This contract is an important step in the Pentagon’s digital transformation. This “Joint Warfighting Cloud Capability” (JWCC) should enable the US Department of Defense to operate a range of digital tools in the cloud, “from the headquarters to the front“, as the ministry summarized. Worth $9 billion, it was just awarded to four major US cloud players: Amazon (AWS), Google (GCP), Microsoft (Azure), and Oracle. This decision also marks the end of the dispute and bitter legal battle.

At the end of 2019, under the administration of Donald Trump, the Microsoft group independently won the “contract of the century” worth 10 billion dollars, called “Joint Enterprise Defense Infrastructure” (JEDI).

Amazon’s cloud subsidiary AWS challenged the choice in court, arguing it was a political decision made under pressure from Donald Trump in response to Jeff Bezos, then Amazon’s boss but also the owner of the daily newspaper. . Washington Post, media criticizing the former president.

To everyone’s surprise, the Pentagon finally decided to cancel the tender in July 2021..Along with the evolution of the technological environment, it became clear that this long-standing contract (…) no longer meets the requirements to fill the capacity gaps.– the ministry clarified. He then launched JWCC, collecting four contracts worth a maximum of nine billion dollars.

These contracts are great news for the four actors. Its money and security claims made it a significant trading stock. The announcement also comes in a context where the economic slowdown is putting pressure on companies’ IT budgets. Although still sustained, the phenomenal growth of cloud providers has slowed in recent months.

Source: Le Figaro

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